Crime reporter

Families Minister Jenny Macklin couldn't possibly live on welfare payments of $35 a day, says a WA senator who actually attempted the feat last year.

Despite a real weekly income of more than $6000 per week Ms Macklin told reporters "I could" when asked on Tuesday if she would survive on the average weekly Newstart Allowance of $246.

By Wednesday, however, her office would not comment on calls for her to walk the talk with Greens acting leader Adam Bandt next month.

The price of living debate was reignited by changes to the social welfare system this week that shifted thousands of single parents from the more generous parenting payment to the Newstart Allowance when their youngest child turns eight, rather than the previous cut-off age of 16.

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The changes would affect between 7000 and 8000 single parents in WA, according to Western Australian Council of Social Service estimates.

WACOSS Director of Policy Chris Twomey said the switch to Newstart could not come at a worse time for affected families.

"The minister's comments suggest that she really needs to take the time to get in better touch with her portfolio and gain some insight into the lives of single parent households, who were already doing it tough before she cut their incomes by $60 to $100 per week," he said.

"She should spend some time talking with single mothers to gain some understanding of the day-to-day reality of raising children below the poverty line ... and see how long she could get by living on $35 per day."

WA Greens Senator Rachel Siewert who spent a week on the job seeker's payment to test its viability in April said it was "incredibly difficult".

"There's no way you can survive on it in any meaningful way – you end up living in poverty," she said.

"Jenny Macklin clearly doesn't understand what it's like to try and make do for $35 a day.

"If you're on there a long time you end up going into debt. There's no two ways about it – you max out your credit card, you end up borrowing money from friends and you end up with payday lenders."

After putting away $135 for rent, a calculated amount for bills, $10 for prepaid phone credit, bus fares and about $50 for food, Ms Siewert was left with $12 in her purse.

There was nothing left for personal care, insurance, or an emergency.

"I made a classic mistake in that I calculated all that out and did my week of shopping so that I could have food for the week, but that leaves no money for an emergency," she said.

"You have no money if for example you're going for an interview and have to do your hair, if you have a medical emergency, personal care needs, if your car breaks down."

Even the small "co-contribution" required when purchasing medication on a concession was impossible for her to meet.

"A week only gives you a small window and I tried to do it really seriously," she said.

"I went to a lot of emergency relief services; I spoke to people on Newstart, so I could see what it was really like for people living it."

Six months later Ms Siewert bought the same basket of groceries again and discovered the price had gone up by more than $7, while Newstart had increased by $1.45 in the same period.

Ms Macklin previously defended the parenting payment changes as a measure to ensure all recipients had the same treatment.

Before this week people who were receiving the parenting payments before July 2006 were able to continue on them until their youngest was 16.

Those who started receiving the payments after July 2006 were already subject to the revised cut-off of eight years.

40 comments

look i understand people have problems....we all do...some bigger than others....but ok how much do you give out on welfare? $1000 a week? more ..?as a tax payer thats always worked for 25 years ...is getting sick of seeing people always relying on handouts...i have 4 kids and would be better staying home on welfare...but i dont...welfare needs to be overhauled.... and this is the start......welfare is what brings social standards down in comunities....

Commenter

skeptic

Location

perth

Date and time

January 03, 2013, 5:59AM

What a lot of crap. No one is asking for $1,000 per week; but $500 would be reasonable & still leave an incentive to find work. 18 year old kids can earn over $800 per week working at MacDonalds. Low income breeds crime & corruption. Doctors earn at least $90 per hour net. Corporate 'criminals" earn between $1M & $10M per year. $35 per day is B...sh.t in our "wealthy, lucky" country

Commenter

pjl1941

Location

Perth

Date and time

January 03, 2013, 11:23AM

How can someone who earns so much money from the public purse be so out of touch with the realities of living. One week is nothing, as a pensioner I could live on $35 for one week, try doing it for a year with bills, overheads, car and all the other things you need. I despair every Christmas and birthdays because I cannot give presents. Is it worth living once you retire?

Commenter

trisha

Date and time

January 03, 2013, 7:37AM

Not meaning to sound insensitive but if one could adequately live on Newstart, what is the incentive to find a job especially in WA where there are chronic labour shortages in some areas.

Commenter

skeptic 2

Location

Perth

Date and time

January 03, 2013, 7:38AM

they use the unemployed as labour anyway ,if you dont work you dont get paid for being out of work.Its a great way to lower wages in reality.,since workers get paid an extra twenty bucks for their required twenty hours per week,giving them285 dollars for a twenty hour per week part time permanent job,which qualifies them for unemployment status,with no option to state that they are working to creditors.That wouldnt be legal.

Commenter

kane

Location

adamson888@clubtelco.com

Date and time

January 03, 2013, 3:24PM

All of this hype is quite a laugh..we old pensioners get exactly the same amount and we manage,a lot of people on benefits smoke,drink and gamble.Government payouts are given to help us survive not provide luxurious living and all of us have the chance to earn extra for a top up.All younger people should have a job,there are plenty on offer these days.

Commenter

boocuddles

Date and time

January 03, 2013, 8:00AM

No, you don't get the same amount; you get more. Way more actually.

A single on the pension is $220 better off a fortnight and a couple on the pension are $184 better off a fortnight.

You really should use your internet connection seeing as the federal government subsidise it.

Commenter

Civil

Date and time

January 03, 2013, 9:17AM

"cost of living" - wage/income is Relative - the cost of living Is the issue - housing and other expenses are too high......

Commenter

trevor1

Date and time

January 03, 2013, 10:27AM

It's not $35 a day that single parents live on; they live on more.

A single parent renting a property (which is likely) will also receive rent assistance of around $120/fortnight plus family tax benefit parts A & B which will add about $160/fortnight per child depending on several factors.

Should they own or mortgage their home they are still eligible for all of the above but minus the rent assistance.

The author of this article and her colleagues/industry really need to be looking at this issue from a realistic standpoint if they're going to be able to report on it accurately which sadly, they are not.

Commenter

Civil

Date and time

January 03, 2013, 8:10AM

Hi Civil. Thanks for contributing to the discussion. Indeed parenting payments are more than $35 per day. As the article explains $35 is the average per day for the Newstart Allowance - not parenting payments. Hence the debate about the price of living was sparked by a larger group of people being shifted away from parenting payments and onto Newstart reducing what they receive to - on average - $35 per day. Hope that helps.